Papa John Pizza Outlets Marks Malaysia Continued Gentrification

It is well documented that an inflow of investment fuels gentrification, new investments in property and building refurbishments have the effect of raising surrounding land values whilst well-known brands establishing themselves locally is indicative of an area being able to support mainstream business.

“The decision by US Pizza Chain Papa Johns to open a network of 100 outlets in Malaysia is yet another sign that Malaysia is well on its way to being a globally established destination.” commented Chintan Mahida, resident property expert at The Overseas Property Blog.

There are many common components of a successful tourist venue from sports venues to entertainment but there is food restaurants and food brand franchises move in when a regular flow of foot traffic has been established.  The most visible global franchise is McDonald’s which entered Malaysia back in 2004 and in recent years the presence of Starbucks Malaysia marks out a neighbourhood on the up. Papa Johns has quickly grown to become a worldwide recognised brand, named 2007 Pizza Today Chain of the Year and is a major player in the global pizza franchise market but up against Pizza Hut, already well established in Malaysia.

The US based pizza franchise is teaming up with local Malaysian outfit Berjaya Pizza Company Sdn Bhd and has even extended the initial  expansion plans to take in up to 100 restaurants over the next 10 years.  The group already has over 170 branches across Asia, 2,100 outlets in the US and a further 1,000 spread around the other areas of the world.  While there are many fast food chains around the globe they need to adapt to the times and trends in the market pace – few have been as successful as Papa John. For nine years running, consumers have rated Papa John’s No. 1 in customer satisfaction among all national pizza chains in the highly regarded American Customer Satisfaction Index (ACSI).

The fact that the Far East is now on the cards would indicate that there is already a substantial tourist base in the region as many people like access to recognisable brands even when they are thousands of miles away from home.  In truth, the Far East has been a tourist haven for many years but only recently have we seen the likes of Malaysia and other similar countries join the tourism party.  They all appreciate the value of foreign investment and have actively encouraged inward investment by major foreign brands with Kuala Lumpur’s KLCC Shopping Mall home to Starbucks, Deli France and Sbarro to name just a few.

However, it has to be said that dynamics of translating a brand from one country to another continent is a whole different ball game and the trick to the success of companies such as Papa John is their ability to adapt their product to local market tastes and learn as they move around the world – the basics remain the same but various local customs and requirements need to be taken into account. McDonalds has become a pro at tailoring their offering to local food tastes and a trip to McDonalds Malaysia will see you eating Ayam Goreng Spicy Chicken to you and me !

On the whole the presence of global brands indicates the mass market appeal of a location and Papa Johns is one more step along Malaysia’s path to mass market destination appeal.

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